Intense negotiations between Senate leaders and the White House on February 7 lead to agreement on a slightly altered House stimulus package that the Senate quickly approved by a vote of 81-16 and sent to the House for that chamber's approval, 380-34. The revised version also extends rebate checks to some 22 million low-income senior citizens and 250,000 disabled veterans, while denying refunds to illegal immigrants.

Under the new legislation, individuals would receive rebate checks up to $600; married couples up to $1200, and an additional $300 for each child under 17 years old. The minimum rebate amount is $300 ($600 for married filing jointly). Taxpayers will receive this amount if they have at least $1 of tax liability or $3,000 in qualifying income, defined as the sum of net self-employment income, veterans' disability payments (including payments to survivors of disabled veterans), and Social Security benefits. Income eligibility for the rebates is capped at $75,000 for individuals and $150,000 for married couples.

In addition, the measure provides employers the opportunity to fully expense equipment up to $250,000 in the year it is purchased with an overall annual investment limit of $800,000 and provides for a one-time 50 percent bonus depreciation on new equipment in the year it is placed in service. In addition, the measure increases the loan limits for Fannie Mae and Freddie Mac, as well as FHA-approved mortgages.

Treasury Secretary Henry M. Paulson, Jr., said in a statement on passage of the stimulus bill, "the IRS will manage the current tax filing season and simultaneously prepare to issue [the rebate checks] starting in early May. Payments will be largely completed this summer."

A White House spokesman indicated that the IRS will immediately begin preparing to issue checks after President Bush signs the bill, although the exact amounts owed to eligible recipients cannot be calculated until 2007 tax returns are filed.

Stay tuned to CompleteTax for the latest information and changes regarding the 2007 tax filing season!

Tax Guide 2008

Controlling the Due Date for Taxes
By carefully timing income and expenses, you can reduce your tax bill, or at least delay its payment.   To learn how, please read Controlling the Due Date for Taxes.

Self-Employment Tax
Brand-new business owners are sometimes surprised to find out that in addition to their federal income taxes, they must also pay a significant percentage of their income as SECA taxes.   For more on this topic, please review Self-Employment Tax.

Selling Your Home
If you sell your home for more than you bought it, special tax rules apply to the gain.   For more on this subject, please review Selling Your Home.

Credit for the Elderly and Disabled
These valuable credits could have a huge impact on your final tax bill.   To learn more about the requirements for these credits, please read Credit for the Elderly and Disabled.

Tax News

You Must File 2007 Tax Return To Receive Stimulus Rebate in 2008

The only way the IRS can send a rebate check to you this summer is if you send them a tax return this spring.    For further details, please read You Must File 2007 Tax Return To Receive Stimulus Rebate in 2008.

IRS Sending Rebate Information Packets to SS, VA Beneficiaries

People who normally don't file income tax returns--like those on Social Security or Veterans Administration benefits--must follow special rules if they hope to receive a tax rebate check this summer.    To find out more, please read IRS Sending Rebate Information Packets to SS, VA Beneficiaries.

Survey Finds Most Consumers Would Not Spend Tax Rebate

A recent survey shows that more people will not spend their rebates, but instead choose to pay down debt.    For further details, please read Survey Finds Most Consumers Would Not Spend Tax Rebate.

High Corporate Tax Rate Impairs U.S. Competitiveness

The United States is lagging behind the rest of the world in corporate tax reform, putting America's job creators at a distinct disadvantage when trying to attract capital and promote growth in a globalized economy.    For more information on this important topic, please read High Corporate Tax Rate Impairs U.S. Competitiveness.


Tax News Archive

For more stories and features on federal, state and payroll tax issues and how they may affect you, read the listing of articles in the archive.

• FREE electronic filing with paid processing.
  
  
• CompleteTax prepares both your federal and resident state returns.
  
  
• File electronically and you may qualify to use our Refund Anticipation Loan (RAL) service, which lets you get your refund FAST!
  
  
• Our useful Tax Guide provides tax tips and straightforward answers to your tax questions.
  
  
• If you owe a balance on your taxes, you can conveniently pay it by credit card. This service is available for federal taxes and certain states.
  
  
• Take advantage of FREE e-mail support, or an online chat service that gets your technical questions answered for a small fee.
  
  
• Learn how to file an Amended Return.